Steps to cancel GST registration by taxpayer

A GST registration can be cancelled by the registered taxpayer or by a GST Officer or by the legal heir of the taxpayer in case of the death of the registered person. This article explains how a taxpayer can apply for the cancellation of the GST registration.

Steps on how to apply for GST registration cancellation voluntarily

Step 1: Log in to the GST portal.

Step 2: Navigate to Services> Registration> Application for Cancellation of Registration.

Step 3: The page ‘Application for Cancellation of Registration’ will contain three tabs. Ensure that the first tab ‘Basic Details,’ is selected. It will collect pre-filled information.

One can either manually fill the ‘Address for Future Correspondence’ or select the option of ‘Address Same as above’, which is the address of the principal place of business. Then, click on save to continue updating the form.

Step 4: Choose the reason for cancellation from the drop-down list.

Below the page will be displayed is the option selected is:

1.Change in PAN due to change in the constitution of business

Select the date of cancellation of registration. Then, update the GSTIN of the transferee entity under the tab ‘Details for Transfer, Merger or Change in Constitution’. The system will verify the details and auto-populate the trade name of the transferee entity.

2.Ceased to be liable to pay tax

1. Input the date from when the registration is cancelled.
2. Update the value of stock and tax liability on the same.
3. Update the details of tax liability that can be offset from the electronic cash ledger, electronic credit ledger, or both.
4. Once the form is submitted, the entered amount will be deducted from the respective electronic cash or credit ledger.

3.Discontinuance of business/Closure of business

1. Select the date of cancellation of registration.
2. Update the value of stock and tax liability on the same.
3. Update the details of tax liability that can be offset from the electronic cash ledger or electronic credit ledger or both.
4. Once the form is submitted, the entered amount will be deducted from the respective electronic cash or credit ledger. 

4.Others

1. Mention the reason for cancellation.
2. Update the value of stock and tax liability on the same.
3. Update the details of tax liability that can be offset from the electronic cash ledger or electronic credit ledger or both.
4. Once the form is submitted, the entered amount will be deducted from the respective electronic cash or credit ledger. 

5.Transfer of business due to amalgamation, merger, de-merger, sale, leased or otherwise

1. Select the date of cancellation of registration.
2. Update the GSTIN of the transferee entity under the tab ‘Details for Transfer, Merger or Change in Constitution’. The system will verify the details and auto-populate the trade name of the transferee entity.

Step 5: Click the save and continue tab which will mark the second tab complete. 

Step 6: The verification tab will be activated. Select the verification statement box to declare that the information provided is true and correct. Select the name of the authorised signatory from the drop-down list and enter the place.

Step 7: Sign the application form using the DSC or EVC option.

Step 8: Input the OTP and click on ‘Validate OTP’.

A confirmation message will be received on the registered email ID and mobile phone.

The concerned tax officer will review the taxpayer’s application and take an appropriate decision. One can track the status of an application by navigating to the Services> Registration> Track Application Status option.

Check the ‘Submission Period’ and enter the dates. Click on the ‘Search’ tab.

FAQs

Who can file for cancellation of registration under GST?

The below-mentioned persons can apply for cancellation of registration:
1. Existing taxpayer
2. A migrated taxpayer whose enrollment application is approved
3. Proper tax officer either voluntarily on an application filed by the registered taxpayer or his legal heir in case of death of the taxpayer

Who cannot apply for the cancellation of GST registration?

The below-mentioned persons cannot apply for cancellation of registration:
1. A person who is registered as a tax deductor or tax collector
2. A person to whom UIN has been already issued

What is the prerequisite for cancellation of registration in case of a merger, amalgamation or change in the constitution?

The precondition is that the transferee (new entity) must be registered under GST and should have a valid GSTIN when applying for cancellation of registration.

What happens to tax payable on stock when applying cancellation of registration?

When filing the cancellation application, the taxpayer has to input the value of stock and its corresponding liability. Then, accordingly, offset the tax payable against the amounts available in the electronic cash ledger or electronic credit ledger. 

In the case of capital goods, the taxpayer shall pay an amount equivalent to the input tax credit availed on such capital goods, reduced by a percentage as prescribed or the tax on the transaction value of such goods, whichever is greater. 

In case of no stock, the taxpayer shall input no amount in the value of the stock section.

Within what time a taxpayer must apply for cancellation of registration?

A taxpayer should apply for cancellation of GST registration within 30 days from the date from which the registration is liable to be cancelled.

Can a person file returns for the past period after cancelling registration?

Yes, a person can file a return for past periods when the registration was active up to the effective date of cancellation.

What to do if the tax officer has initiated suo-moto cancellation of registration?

In such a case, the taxpayer shall respond to the notice issued by the tax officer by navigating to Dashboard> Services> Registration> Application for Filing Clarifications.

When does the GSTIN status show suspended?

The GSTIN status shows suspended when:
1. Taxpayers files an application for cancellation of registration or
2. Tax Officer initiates suo moto cancellation

When the GSTIN status shows ‘suspended’, one can only perform activities like filing appeals, making payments, filing for refunds, replying to notices/orders/assessments and can even make any other non-core amendment.